Sound management of risks related to money laundering and financing of terrorism.
Note: The BCBS issued in February 2016 anew release of this document, enlarged with a new Annex 4: General Guide to Account Opening.
The Basel Committee on Banking Supervision has issued a set of guidelines to describe how banks should include risks related to money laundering and financing of terrorism within their overall risk management framework.
Prudent management of these risks, together with effective supervisory oversight, is critical in protecting the safety and soundness of banks as well as the integrity of the financial system. Failure to manage these risks can expose banks to serious reputational, operational, compliance and other risks.
These guidelines are consistent with the International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation issued by the Financial Action Task Force (FATF) in 2012 and supplement their goals and objectives. The risk management guidelines published today includes cross-references to FATF standards to help banks comply with national requirements based on those standards.
The guidelines supersede two previously-issued Basel Committee publications: Customer due diligence for banks (October 2001) and Consolidated KYC management (October 2004).
An earlier version of the Sound management of risks related to money laundering and financing of terrorism guidelines was issued for consultation in June 2013. The Committee thanks those who provided feedback and comments, which were taken into account in revising and finalising the guidelines.
- Publication Date: January 2014
- Publication Type: Guidelines
- Publication Status: Superseded
- Publication Category: Compliance
- Number of Pages: 33
- Keywords: CDD, FATF, Criminal Activities
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